The number of cryptocurrency investors has been steadily increasing around the world for a while, but recent growth has been incredibly explosive.
Everyone knows that crypto can be a very volatile asset class. Investors have to be careful about how much they invest, as well as when to get in and out of the market. This problem is further complicated by the fact that crypto investors are not generally comfortable with traditional banking solutions, meaning that many either never have an account or have stopped making regular transfers into their accounts.
Corporations have entered the crypto market and crypto mining and trading which have caught the attention of government regulators. Since the invention of bitcoin, governments have done relatively little compared to traditional investment categories to regulate or moderate the market. For the most part, cryptocurrency has been allowed to spread around the world as a uniquely decentralized financial asset.
While a larger pool of investment means greater potential for everyday investors, more institutional involvement also threatens digital currencies’ ability to operate outside of traditional finance. Since the DeFi space is still considered relatively new, hackers are taking advantage of this situation & figuring out loopholes or flaws to leverage to their advantage. With the total amount lost to DeFi hacks increasing by the year (currently at an all-time high of 1.3 billion dollars) the digital space still requires more safety regulations.
Even though the chances of cryptocurrency becoming a part of the global mainstream payment system seems very plausible in the near future, especially with countries adopting their regulatory framework, the safety risks it still imposes are to be addressed.
With Crypto not leaving us in the near future, it is best to join in on the bandwagon but stay cautious as well. Insure your crypto assets now using the varied smart contract and crypto exchange covers we offer on the CoverCompared platform, all available for purchase without gas fees & at a 25% discount using our own native token $CVR.
CoverCompared is the First DeFi insurance marketplace for the global crypto ecosystem. We aim to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products bought using a host of cryptocurrencies.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life, and travel policies. The platform will include a frictionless insurance marketplace experience that incorporates next-generation blockchain technology and tokenized incentives.